Studying The Role of Extensible Business Reporting Language (XBRL) in Continuous Auditing

Document Type : Research Paper

Authors

1 PhD of Accounting, Auditor of the State Accounting Court, Iran

2 PhD of Accounting, Islamic Azad University, Aliabad Katul Branch, Aliabad Katul, Iran

Abstract

Using extensible business reporting language (XBRL) not only affects the qualitative characteristics of accounting information, but it can also have an impact on the time, cost and quality of auditing. The present study has aimed to examine the role of extensible business reporting language in continuous auditing. This research is an applied research in terms of the purpose of the study and it is an analytical survey in terms of research method. The statistical population of this study is composed of independent auditors and members of Iran’s official Accountants community. In order to collect the necessary information and the views of the members of the research population, a questionnaire containing five hypotheses and 25 questions were designed and were randomly distributed among 120 of the population members in 2016. Ultimately, the questionnaires that were filled out by the research samples were collected by the researchers. The data obtained from the questionnaires were analyzed using different statistical methods (binominal test, t-test, one-sample Wilcoxon test and Kolmogorov-Smirnov test). The research results confirmed the research hypotheses and indicated that in the environment of extensible business reporting language, the time and cost of continuous auditing will be decreased and accuracy and quality of continuous auditing will be improved. In addition, using extensible business reporting language in continuous auditing will facilitate the extraction and analysis of data and accelerates the processes of executing continuous auditing.

Keywords

References

Abdollahi, A. , & Tahereh, M. (2011). Recognizing and prioritizing scenarios of implementing XBRL in Iran’s capital market. Quarterly journal of Stock Exchange, 14, 203-219 (In Persian).
Ahmad Poor, A. , Bagherian, R. , & Bagherian, A. (2009). Feasibility of Extensible Business Reporting Language (XBRL) in companies listed in Tehran’s Stock Exchange. Quarterly journal of Stock Exchange, 6, 31-70 (In Persian).
Alles, M. G. , & Gray, G. L. (2012). A relative cost framework of demand for external assurance of XBRL filings. Journal of Information Systems, 26 (1) , 103-126.
Arab Mazar Yazdi, M. , & Jaberi Nasab, B. (2009). XBRL, a revolution in financial reporting over the past decade. Accountant Journal, 203) 23 (, 40-48 (In Persian).
Arab Mazar Yazdi, M. , & Madahi, A. (2009). Continuous auditing: what and why. Quarterly journal of auditing knowledge, 29, 4-19 (In Persian).
Arab Mazar Yazdi, M. , & Sarafraz, M. (2016). Improving corporate governance with the help of XBRL. Accountant Journal, 290 (32) , 53-60 (In Persian).
Azizkhani, M. , Imani Barandegh, M. , & Moradni. H. (2015). The effect of extensible business reporting language (XBRL) on auditing: an opportunity or a challenge. Empirical accounting researches, 15, 23-37 (In Persian).
Baghomian, R. (2013). The effect of XBRL on the auditing profession. Auditor Journal, 68, 56-66 (In Persian).
Boritz, J. E. , & No, W. G. (2003). Assurance reporting for XBRL: XARL (extensible assurance reporting language). Trust and data assurances in capital markets: the role of technology solutions, 17-31.
Bozorg Asl, M. , & Vali Poor, R. (2006). Familiarity with the concepts and application of XBRL. Quarterly journal Official Auditor, 9 (In Persian).
Cantu, I. , Liu, L. , Zhou, H. (2006). Continuous Auditing. Edinburg, Texas: College of Business Administration. University of Texas-Pan American.
CFA Institute Member Survey: XBRL. (2009). CFA Institute Market Research.
David, J. S. , & Steinbart, P. J. (2000). Data warehousing and data mining: opportunities for internal auditors. Institute of Internal Auditors Research Foundation.
Du, H. , & Roohani, S. (2007). Meeting challenges and expectations of continuous auditing in the context of independent audits of financial statements. International Journal of Auditing, 11 (2) , 133-146.
Efendi, J. , Park, J. D. , & Smith, L. M. (2014). Do XBRL filings enhance informational efficiency? Early evidence from post-earnings announcement drift. Journal of Business Research, 67 (6) , 1099-1105.
Enachi, M. , & Andone, I. I. (2015). The progress of XBRL in Europe –projects, users and prospects. Procedia Economics and Finance, 20, 185-192.
Flowerday, S. , Blundell, A. W. , & Von Solms, R. (2006). Continuous auditing technologies and models: A discussion. Computers & security, 25 (5) , 325-331.
Gunn, J. (2007). XBRL: Opportunities and challenges in enhancing financial reporting and assurance processes. Current issues in auditing, 1 (1) , A36-A43.
Kogan, A. , Sudit, E. F. , & Vasarhelyi, M. A. (1999). Continuous online auditing: an evolution. Journal of Information Systems, 13 (2).
Kordestani, G. , & Mostafa, R. (2009). Continuous auditing and extensible business reporting language. Official accounting quarterly journal, 8, 104-113 (In Persian).
Lennox, C. S. , & Pittman, J. A. (2011). Voluntary audits versus mandatory audits. The accounting review, 86 (5) , 1655-1678.
Liu, C. , Wang, T. , & Yao, L. J. (2014). XBRL’s impact on analyst forecast behavior: An empirical study. Journal of Accounting and Public Policy, 33 (1) , 69-82.
Mahdavi, G. H. , & Saman, M. (2010). Application of expert systems in auditing. Quarterly journal of auditing knowledge, 89, 22-38 (In Persian).
 Mohammadi, J. ,& Khozain, A. (2017). Language (XBRL) on Improving the Quality of Financial Reporting, Increasing the Transparency of Financial Information and Reducing Information Asymmetry. Journal of Accounting Research, 7 (3) , 41-60 (In Persian).
 Nel, G. F. , & Steenkamp, L. P. (2008). An exploratory study of chartered accountants’ awareness and understanding of XBRL. Meditari Accountancy Research, 16 (1) , 79-93.
Nojavan, M. , Mohammadi, M. ,& Feel Sarayi, M. (2016). The Study of Reporting Language (XBRL) Dimensions and Acceptance Levels. Journal of Accounting Research, 6 (3) , 1-16 (In Persian).
Pakravan, L. (2012). Auditing in XBRL. World of Economy Newspaper, 2747, 22 (In Persian).
Plumlee, R. D. & Plumlee, M. A. (2008). Assurance on XBRL for financial reporting. Accounting Horizons, 22 (3) , 353-368.
Rechtman, Y. (2004). Continuous auditing and XBRL, The Trusted Professional, NYSSCPA 7 (8).
Saghafi, A. Arab Mazar Yazdi, M. & Rafik, B. (2005). Financial reporting in internet and its status in Iran. Quarterly journal of accounting, 10 (11) , 127-156 (In Persian).
Venkatesh, R. , & Armitage, J. (2012). Accountants Awareness and Perceptions about Assurance on XBRL Financial Statements. Journal of Applied Business Research (JABR) , 28 (2) , 145-154.
Wagenhofer, A. (2003). Economic consequences of internet financial reporting. Schmalenbach Business Review, 55 (4) , 262-279.
Willis, M. (2003). Corporate reporting enters the information age. Regulation, 26, 56.
Zachary, C. , & Mike, W. (2002). Corporate Reporting and the Internet: Understanding-and Using-XBRL.
Journal of Accounting and Social Interests
Volume 9, Issue 3 - Serial Number 34
December 2019
Pages 131-155

Files

History

  • Receive Date: 04 January 2019
  • Revise Date: 24 February 2019
  • Accept Date: 01 May 2019

Share

How to cite

Statistics